The Cyprus Department of Land and Research has analysed property market indicators for the years 2020-2021. Three parameters were taken into account: the number of building permits issued, the number of properties sold and the country's cities.
The number of building permits issued is an important parameter that indicates the activity of the industry in the country.
From January to November 2020, the Cyprus Land and Survey Department issued 6,375 permits, of which 4,606 were for residential construction. Their number is comparable to the pre-crisis figures: during the same period in 2019, the department issued only 3% more permits.
Accommodation construction is active in Nicosia, La aca and Famagusta, with more building permits issued in these cities than in 2019. And in Limassol and Paphos, 12% fewer homes will be built.
Number of residential properties that received a building permit from January to November 2020
Real estate sales to non-EU citizens fell 45% year over year. Real estate experts Immigrant Invest name two main reasons for the fall in demand: the pandemic and the closure of the citizenship by investment program.
The dynamics of sales of Cyprus real estate to citizens of countries that are not members of the European Union
Demand for property in Cyprus' big cities has also fallen - down 54% compared with January 2020. The property market in Paphos, a coastal town in the south-west of the island, suffered the most. La aca is in second place for the decline in the number of deals, with Famagusta in third.
Real estate sales in the cities of Cyprus in 2020-2021
What for investors to buy property in Cyprus in 2021
Until November 2020, investors were buying a property in Cyprus to qualify for the Citizenship by Investment programme. The government closed the programme, but wealthy cosmopolitans still have the option of obtaining a residence permit by buying accommodation on the island.
Permanent residence in Cyprus is granted if an investor purchases one or more properties from €300,000. Under the terms of the programme, the applicant only buys new accommodation - the government does not accept transactions for secondary properties. When an investor receives a permanent residence permit, they can rent out the property they have bought.
House prices fell by 1.2% over the year in September 2020. This is the statistic provided by the Central Bank of Cyprus. In February 2021 the apartment in Limassol costs from €200,000 to €300,000. A two-storey villa with its own swimming pool will cost about €1-2 million
Two-storey villa with swimming pool close to the sea in La aca.
Price - € 630,000
Apartments with private pool in Limassol.
Price - from €723,000
Villa in a gated premium village near Paphos.
Price from 1.3 million euros
Central bank analysts forecast that the Cypriot economy will recover in 2021. GDP growth is forecast at 3.7%. Along with the economy, real estate prices will begin to rise. Demand for accommodation will also start to rise when the country opens the border to foreign tourists.
Property experts at Immigrant Invest recommend not to put off buying until the second half of 2021. As long as demand and prices remain low, more properties are available to the investor at an attractive price. And EU residency status will be a bonus to the purchase.
Residents of Cyprus have the right to live, do business and study in the country without restrictions. A resident card holder can apply for citizenship in 5 years and can travel visa-free to 173 countries around the world.
Immigrant Invest is a licensed agent of European residence permit by investment programmes. If you want to become a resident of an EU member state, seek advice from experts in investment programmes.